3 september 2004

g-secs drop - rupee unchanged
mumbai: the rupee closed unchanged from its previous levels, ending at 46.32 per dollar.

forwards market: the six-month premium ended at 2.19 per cent (2.28 per cent) and the premium for one year ended at 1.87 per cent ( 2 per cent).

g-secs: the prices fell with the 7.37 per cent 2014 paper closed lower at rs.109.60 at 6.06 per cent ytm, as against wednesday's closing levels of rs.110.30 (5.95 per cent ytm). the 7.38 per cent 2015 paper closed at rs.109.60 (6.18 per cent ytm), as against its previous closing at rs.110.30.

call rates: easy at around 4.25 per cent levels in the inter-bank market.

rbi allows banks to shift securities
mumbai: providing some relief to the commercial banks, against the hardening yields in the domestic debt markets, the reserve bank of india has allowed them to transfer securities in excess of the prescribed 25 per cent limit, in the held to maturity category (htm).

however, the apex bank has emphasised, in a circular issued to commercial banks here on thursday, that they may do this only when the excess comprises only of slr securities, and when the total slr securities held in the htm category is not more than 25 per cent of their demand and time liabilities (dtl) as on the last friday of the second preceding fortnight.

to enable the above, as a one-time measure, banks may shift slr securities to the htm category any time, once more, during the current accounting year. such shifting should be done at the acquisition cost, book value or market value on the date of transfer, whichever is the least, and the depreciation, if any, on such transfer should be fully provided for, rbi has said. the non-slr securities held as part of htm may remain in that category. no fresh non-slr securities are permitted to be included in the htm category.

the central banks latest move is in light of representations received from banks that the existing guidelines of classification of investments should be reviewed with a view to bringing them in alignment with international practices and current state of risk management practices in india, taking into account the unique requirement of maintenance of statutory reserve requirement of 25 per cent of dtl.

dhanalakshmi bank to disburse rs.51 crore in micro credit
kochi: the thrissur-based dhanalakshmi bank has set apart rs.51 crore for micro credit disbursal for the current year. in the initial year of launch, the bank was able to extend credit to the tune of rs.47 lakh to self help groups(shgs). the bank now extends assistance to around 17,500 members belonging to 880 shgs covering a total outlay of rs.11.45 crore.